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Segment Analysis: Call Centres

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VoicenData Bureau
New Update

The euphoria about call centre business in India is second

only to dotcoms. There is one vital difference though. While the dotcom craze is

seen by many as a bubble that will burst, call centre business is a thriving

business in countries like the US, Australia, and Ireland. India doesnot have to

invent anything new, but only leverage on its inherent strengths.

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  • Almost all companies in highly competitive industries

    like services, technology,and retails and distributionin are building

    in-house call centres or have outsourced these activities

  • With globalization, people are looking at places where

    the cost of recruiting, training, and managing manpower is comparatively

    lower.

  • India has become the hot favourite because of low-cost

    manpower, language, time zone, and good technology base.

What Is Happening?

  • After GE established its call centre (and other remote

    service facilities) in India, India’s potential as a base for global call

    centre came to the limelight. Since then, a few others like iDLX and

    National Insurance have also started their call centres in India.

  • After NASSCOM-McKinsey published the potential of Indian

    IT-enabled service business potential, there has been beeline to this

    segment by entrepreneurs who want to set up outsourced offshore call centre

    business in India.

  • Most of the action is in the Indian outsourced call

    centre industry. Today, there are as many as 25 call centres that are being

    established. A few like Air Infotech and Minerva have gone live with their

    services.

  • India, thanks to Infosys, Wipro, and Silicon Valley

    Indian-owned start-ups has been able to build an image of a highly

    technically competent nation. This, coupled with large supply of venture

    capital and a new found entrepreneurial spirit, has given rise to quite a

    few eCall centres, the web chat/e-mail based technical support centres. Some

    of the technical support start-ups are planning to provide other services

    like marketing support in the future.

  • Non-tech entrepreneurs or non-tech big businesses wanting

    a pie of the new opportunity are the promoters of most voice call centres.

    Voice call centres are perceived to be low technology, human resource

    intensive business and hence the craze.

  • Most web/e-mail-based interaction centres like Aditi,

    Transworks, customerasset.com, Daksh.com, etc. on the other hand, are

    promoted by professionals with strong technology industry background.

  • A handful of domestic call centres are also coming up.

    But dollar revenues are still luring most to the offshore market.

  • Centres

    Next>>>

    Most call centres have come up in Chennai. Ahmedabad and

    Mumbai are the other favoured destinations for voice call centres.

    Bangalore, expectedly, is emerging as the home to web/e-mail-based tech

    support centres. Gurgaon near Delhi, with fare share of both, is emerging as

    the undisputed call centre capital of India.

  • Most of the business has so far come from Australia on

    the voice side, while the US dotcoms and technology companies are giving

    business to the e-mail/chat-based call centres.

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The Business Today

  • The Top Vendors (1999-00)
    Company Type Location Initial Channel
    24/7 Customer.com Domestic/International Bangalore Email/Chat
    Air Infotech International Gurgaon Voice
    Allsec Technologies International Chennai Voice
    Customerasset.com Domestic/International Bangalore Integrated
    Cybiz Call Domestic/International Gurgaon Voice
    Daksh.com International Gurgaon Email/Chat
    Flex Industries International Noida Voice
    IT&T International Noida Email/Chat
    Minerva International New Delhi Voice
    Renasonic International Gurgaon Voice
    Sapphire Infotech Domestic Delhi Voice
    Solutions Domestic New Delhi Integrated
    Spectr@mind International Gurgaon Integrated
    Talisma Domestic/International Bangalore Email/Chat
    Transworks International Mumbai Integrated
    Venus Cybertech International Hyderabad Voice

    It is estimated that in the first year, most call centres

    will get about $12 to $20 per seat per hour depending on the type of service

    rendered.

  • Service quality, not just cost is likely to emerge as the

    differentiator for Indian call centres.

  • Today, the initial (set-up) cost for a 100-seat voice

    call centre is about Rs 12 crore.

  • The estimated operational cost for the voice call centres

    is estimated to be $7-$8 per seat per hour, compared to the corresponding US

    figure of about $22. The cost is likely to go up from next year onwards, as

    more capabilities are added and better quality standards are adhered to. The

    scarcity of people will also take the salary up.

  • Most call centre companies are hoping to earn somewhere

    between Rs 5 - 8 crore for a 100-seat call centre.

  • Business is coming from direct marketing, insurance, and

    finance companies.

  • Recruitment and training of agents and availability of

    bandwidth are likely to be the toughest challenges for Indian call centre

    businesses.

Forecast

  • Though not a bubble that will burst, the call centre

    industry will go through a readjustment and shakeout process in the next

    couple of years. Some good call centre companies will acquire the less

    successful ones.

  • DLD will give a major boost to the industry.

  • Most of the single channel call centre companies will

    graduate to integrated (voice, e-mail, and chat) call centres.

  • Soon, dotcoms and technology companies will give business to both voice

    and web-based call centres. Direct marketing activities are likely to shift

    to e-mail.
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